I take ‘responsibility’ and make one question into four answers! While it might be a ‘family’ business, some license transfers ‘test’ the limits of law, and a CSLB reminder to those who are called to assist in fire prone communities…
Q: I was reviewing our license recently, and we are an Limited Liability Company (LLC). I noticed that our Qualifier is shown as an “RMO”. I didn’t think that LLCs could have “RMO’s”. I thought LLC only had “Members” or “Managers”. Is this a CSLB mistake or am I about to learn something new?
A: You are about to learn something new! The Qualifying Individual on an LLC license can be a (1) RMM (Member), an (2)RMG (Manager), an (3) RMO (Officer), or an (4) RME (Employee). LLCs are required to have at least one Member or Manager listed and their Member/Managers listed must match the CA Secretary of State records. LLC’s can also internally “elect” to have Officers. In CA, Officers of an LLC are not required to be listed with the SOS but can still be listed on the Contractor’s License.
Q: My wife and I have a Partnership license and we are ready to retire. One of our Sons who has worked for us for years is wanting to take over the business. Being that he’s worked for the Company for well over five years, can he do that without testing?
A: No, he will not be granted a Waiver of the exams based on working for the Partnership for over five years. This is yet another reason why I’m not a big fan of “General Partnerships” with respect to licensing. B&P Code section 7065.1, which is the Code Section authorizing Waivers under certain conditions, is in relation to Sole Owner, Corporation, and LLC licenses. For Partnerships, the only Waiver which would be permitted is where a General Partner replaces the Qualifying Partner after five years, with no other changes to the Partnership structure.
With fire season beginning in California, the Contractor’s State License Board wants to remind all “C-16” Fire Protection Contractors about the requirement for Certification through CAL FIRE. This is required for all installers, licensees, and their employees, of water-based fire protection systems for commercial or multi-family dwellings. Please note this does not apply to “C-16” Contractors and employees who work on one and two-family homes.
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While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at www.cutredtape.com.